According to a recent update shared by Crypto.com Research & Insights, the DeFi and Layer-1/Layer-2 landscape is showing mixed signals, with stablecoin distribution broadening while overall total value locked (TVL) trends remain under pressure.
USDC Shows Broadest Distribution Among Stablecoins
Crypto.com’s Stablecoin Concentration Index (HHI) indicates that USD Coin currently has the lowest concentration score among major stablecoins. A lower HHI suggests more even distribution across wallets and platforms, pointing to wider usage and less supply centralization compared to peers.
In contrast, several other stablecoins show higher concentration levels, meaning supply is more clustered among fewer holders or venues.
Ethereum Foundation Begins Staking ETH
The update also notes that the Ethereum Foundation has started staking portions of its Ethereum holdings. This move signals a shift toward active participation in network security and yield generation rather than passively holding reserves.
Additionally, Ether.fi is migrating its liquid restaking protocol to OP Mainnet, expanding its footprint within the Layer-2 ecosystem.
DeFi TVL: Ethereum Still Dominant, But Down Over 30 Days
Despite ecosystem developments, DeFi TVL data shows short-term weakness across most major chains.
Ethereum remains the dominant network with approximately $52.8 billion in TVL, though it is down around 3.7% over the past 7 days and more than 21% over 30 days.
Solana and BSC follow with $6.4 billion and $5.46 billion respectively, both posting weekly and monthly declines. Bitcoin’s DeFi-related TVL saw one of the sharper weekly drops, down over 13%.
Tron stands out with a modest weekly gain of roughly 1.16%, while Provenance recorded a notable 30-day increase exceeding 64%.
DEX Activity by Chain
Looking at leading decentralized exchanges by chain:
- Uniswap on Ethereum holds over $2.1 billion in TVL.
- PancakeSwap on BSC leads its ecosystem with $1.83 billion.
- Raydium dominates on Solana with $1 billion.
- GMX on Arbitrum and Velodrome on OP Mainnet both saw notable weekly declines.
Overall, most DEX platforms recorded negative 7-day changes, reflecting broader cooling across DeFi liquidity.
The Bigger Picture
While USDC’s distribution metrics point to structural strength in the stablecoin market, DeFi liquidity remains under pressure across major chains. At the same time, staking activity from key ecosystem players and Layer-2 migrations suggest long-term infrastructure development continues despite short-term capital outflows.
The divergence between improving stablecoin distribution and declining TVL may signal a repositioning phase rather than a full-scale contraction.
